Libs, Labor caught in gridlock over East West link

Daniel Andrews has accused the government of trying to blackmail Victorians into voting for the Coalition, after it warned taxpayers would face a $1.1 billion compensation bill if contracts for the East West Link are cancelled.

The Labor leader poured scorn on the claims, describing them as desperate.

"There’ll be no compensation paid, because these arrangements are not valid,” he told radio station 3AW.

"They’re not worth the paper they’re written on."

Treasurer Michael O’Brien warned that tearing up the contracts could expose the state government to significant financial risk.

"Daniel Andrews' threat to rip up the East West Link contract would cost $1.1 billion in compensation to the winning consortium, as well as $1.5 billion that would have to be refunding to the federal government," he said.

"Hundreds of people are already employed on East West Link; these are people who’ll be heading for the dole queues on Sunday morning if Daniel Andrews is elected."